Managing Regulator Relationship Flashcards
Regulators manage relationship with firms
Preventative
Reactive
Risk- based
Medium - high impact firms
Low impact firms
Preventative
Inspection and surveillance
e.g. compliance function being included on product commitees
Risk- based
Impact and probability
Medium - High impact firms
High co-ordinate monitoring through individual relationship manager
Low impact firms
Base - line monitoring of returns
1 report
Reactive
Discipline
Enforcement
Effective relationships
Trusting
Open
Constructive
Co-operative
Benefits to Firm of relationship
ability to comply to regulations
regulators opinions on new issues or new business
Benefits to regulator of relationship
firms opinions on informal basis
Scheduled visits
Periodic reviews
focussed discussions
prior notice
Unscheduled visits
Dawn raid
ongoing possible criminal investigation
start of working day
police presence
Dawn raid prep / response
Media prep
procedures for key staff
organisation of info systems (solicitor views, fca can’t view)
Legally privelged docs don’t have to be provided to regulator
Regulator can take original docs specified in warrant
check warrant valid
contact solicitor
don’t tip off
report of raid
Notifiable breaches
report to regulator (within 24 hours)
Reporting of breach to regulator- what least likely required
a justification by senior managers on how the event occurred
closer monitoring scheme
A planned on-going schedule of visits to a particular firm
